May 28th, 2025
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European Union officials are trying to stop the US government from putting a 50% tax on goods imported from Europe. The US President has said he is not happy because Europe sells more goods to the US than it buys, which causes a trade problem. However, the EU says that if digital services are included, the US actually sells more, which makes the trade equal. To make the trade in goods more balanced, the EU could buy more natural gas from the US, spend more on defense with US companies, or lower its 10% tax on foreign cars. But, disagreements about European food rules and taxes have been difficult to solve. Experts believe that if these 50% taxes are introduced, they would make the eurozone's economy smaller by up to 1% next year and reduce business investment by more than 6%.
May 28th, 2025
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